Liabilities Breakdown
266 M
Current Liabilities
140.3 M
Long-Term Liabilities
| Total Liabilities | 535.04 Million | |
| Current Liabilities | 265.98 Million | |
| Long-Term Liabilities | 140.28 Million | |
| Tax Liabilities | 5.81 Million |
Will Progress Software (NASDAQ:PRGS) be in financial trouble before October?
 | By Raphi Shpitalnik | Macroaxis Story |
Progress Software is scheduled to announce its earnings today. The next earnings report is expected on the 21st of January 2021. Progress Software Calculated Tax Rate is relatively stable at the moment as compared to the past year. Progress Software reported last year Calculated Tax Rate of 6.62. As of 09/29/2020, Accounts Payable Turnover is likely to grow to 45.54, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 78.2 M. While some of us are becoming more enthusiastic about technology space, let's sum up Progress Software in greater detail to make a better estimate of its debt utilization. We will discuss if it could be a much better year for Progress Software shareholders.
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Reviewed by Michael Smolkin
The company currently holds 325.46 M in liabilities with Debt to Equity (D/E) ratio of 0.96, which is about average as compared to similar companies. Progress Software has a current ratio of 1.26, suggesting that it may have difficulties to pay its financial obligations when due. Progress Software financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Progress Software, including all of Progress Software's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Progress Software assets, the company is considered highly leveraged. Understanding the composition and structure of overall Progress Software debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Progress Total Liabilities
Progress Software liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Progress Software has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Progress Software balance sheet include debt obligations and money owed to different Progress Software vendors, workers, and loan providers. Below is the chart of Progress short long-term liabilities accounts currently reported on its balance sheet. You can use Progress Software financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Progress Software's Liquidity
Progress Software financial leverage refers to using borrowed capital as a funding source to finance Progress Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Progress Software financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Progress Software's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Progress Software's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Progress Software's total debt and its cash.
What is driving Progress Software Investor Appetite?
The big decline in price over the last few months for Progress Softwaremay encourage retail investors to take a closer look at the company as it is trading at a share price of 37.28 on slow start in trading volume. The company executives failed to add value to investors and positioning the company supply of money to exploit market volatility in August. However, diversifying your holdings with Progress Software or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.95. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Progress Software partners.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Progress Software. Please refer to our Terms of Use for any information regarding our disclosure principles.